Washi tape is everything for easy pin board style image and to do list organising. You can find it in just about every colour and cute pattern imaginable. I use this for photos and for office space ordering.
This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.